The Director of Regional Cooperation of Investment Coordinating Board (BKPM), Rizar Indomo Nazaroedin, has said the Board is optimistic that foreign direct investment (FDI) in Indonesia will increase as the country`s economic growth rate rises.

With our economic growth rate expected to reach 6.3 percent, we are pretty sure there will be an increasing flow of FDI to Indonesia. Foreign investors will surely use this opportunity to participate in the country`s economic development," he told ANTARA News here on Wednesday.

"It is like a law of nature. A country with good economic growth will be targeted as an investment destination because foreign investors will not hesitate to put their money in a place where it can reap rich dividends," he explained.

Nazaroedin added that increased flow of investment into Indonesia will boost the nation`s economic growth, which would be in line with the General Plan Investment vision of BKPM.

He noted that Asian countries accounted for a majority of FDI in Indonesia.

Based on Report of Capital Investment Activity (LKPM), Singapore was the largest foreign direct investor in Indonesia during the second quarter of 2012, with investments worth US$0.8 million (about Rp7.7 billion) which accounted for 13.3 percent of total FDI in Indonesia.

"There are four other countries with major investments in Indonesia, namely the United States, Australia, Japan, and South Korea," Nazaroedin stated.

LKPM also identified the five provinces that attracted the largest foreign investments: East Java, West Java, Banten, Papua and East Kalimantan.

The largest FDI sector during the second quarter of 2012 was mining, accounting for 16.3 percent of total FDI, followed by electricity, gas and water (9.3 percent), chemical and pharmaceutical industries (16 percent), food industry (8.3 percent) and industrial metal goods, machinery and electronics (8.2 percent).

Nazaroedin noted that the sectors that received the largest amount of FDI were those that attracted the highest number of foreign investors.

He said the Board was optimistic that FDI would continue to increase in 2013.

"Indonesia, with its high economic growth and efficient macroeconomic management, can be a reliable state for investment. Besides, the country is well known for its wealth of natural resources," Nazaroedin added.
(T.Y012/INE/KR-BSR/S012)

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